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E1- The classification of the business according to its ownership, and an explanation of the benefits and constraints of this type of ownership.

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To Mrs Gray, I have been asked to produce a detailed business report of one medium size or large business. My well- planned business report should contain: > The objectives, organisational structure and communication channels that operate within the business. > An examination of how these factors, interrelate in a way that can affect the success of the business. > An explanation of how quality assurance and control assurance and control systems help the business to add value to its products. > Consideration of alternative methods of quality assurance and control. > Consideration of how well the business is meeting its objectives. > An explanation of the impact of ICT upon the internal and external communications of the business. E1- The classification of the business according to its ownership, and an explanation of the benefits and constraints of this type of ownership. Mixed Economy - Businesses fall into two categories: A Private Enterprise or a Public Enterprise. In private there are businesses such as sole proprietors, partnerships, limited companies and franchises. In the public section you have public corporations, government departments and local authorities. I have written detailed descriptions of some of these below. Sole Trader - A sole trader is a one-person business, commonly found in trades where only small amounts of finance are required to set up and where there are very few advantages to the existence of larger organisations (e.g. hairdressing, newsagents, market traders). Sole traders often employ waged employees, but they alone have to provide all the finance (often savings and bank loans) and accept all the risks of the business venture. In return, they have full control of the business and enjoy all the profits. A sole trader faces unlimited liability for his/her debts and it is referred to as an unincorporated business - this means that there is no legal difference between the business and the owner. ...read more.


Therefore Argos could also be described as having a democratic style of management as well. Culture - This is a set of values and beliefs that are shared by people and groups in organisations. The company's culture must relate to and reflect the company's objectives/ aims. Argos' corporate culture is a set of different values that help the company reach its objectives. They are - Teamwork (as this leads to greater co-operation and the sharing of best practice), Taking ownership for decisions (so that the managers solve the problems themselves instead of putting the blame on the company as a whole), respecting each other and having the competitive will to win. E5- A description of the use of ICT for internal and external communications of the business. Communication is essential for a business to succeed. The business must have the ability to communicate clearly both internally and externally. Good communicators succeed in choosing the best medium of communication for the particular purpose in mind. Internal Communication - This is the part within the business e.g. The communication between different departments. Means of this sort of communication can include- > Team briefings or meetings > Notices > Memos > Telephone > Face to Face > E- Mail > Fax External Communication - This is the communication that is used to contact people outside of the business e.g. to the suppliers. Means of this sort of communication can include- > Telephone > Fax > Meeting with the suppliers > Web sites or Internet > Market Research > Advertisements > Letters > E- Mail Good communication- A business needs good communication otherwise it will struggle to succeed e.g. using E- Mail instead of handwriting as it is clearer. Usually a good structure inside the organisation can help as the message can be passed on easily and quickly, if not then the message could get distorted. Formal Communication - This is an official or recognised means of communication. This can include official meetings, notice boards or newsletters etc. ...read more.


It is also likely that a business will be able to implement the time-based management philosophy to its R&D processes, as well as to the production line. A business, which can develop, and launch more products in a shorter time than its competitors will benefit from a number of advantages: > If the business is the first to launch a product on the market, then it can charge a premium price to reflect the innovative nature of the product. > Premium prices help to quickly recoup R&D costs, as well as earning the business a significant profit margin per unit sold. > Brand loyalty is likely to develop - enabling the business to use this strong customer base as a 'launch pad' for new products in the future. > The diversity of products that are on sale will increase the product portfolio of the business, as well as reduce the risk of business failure should one or two of the products prove unsuccessful. C1- Judgements about how successfully the business is meeting its objectives. When Argos was acquired by GUS in 1998, sales and profits were disappointing. Since then growth has been excellent. Annual sales grew by 13% and profits by 17% from 2002 to 2003 alone, significantly outperforming the market as a whole. This has been a remarkable turnaround for the business, brought about by instilling insights and enthusiasm into employees, keeping the brand modern with strong identifiable values, making the service more convenient, and building a culture within the firm that wants to win. Changes to the Argos culture and in its marketing mix have revitalised the brand and boosted its market share. Its success at motivating its staff, developing an effective advertising campaign and providing more ways for customers to buy the firm's products have all been recognised by Industry awards highlighting the remarkable recovery of Argos in recent years. As a result, Argos is now the market leader (by sales volume and by sales value) in several key product categories. These include small kitchen appliances, home office and toys. Unit 1 Business at work James Toll 1 08/05/07 ...read more.

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